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Head-to-head explainers of commonly-confused quant finance concepts. Each article picks a real decision a practitioner has to make and walks through how to make it.
Z-Score vs Bollinger Bands vs RSI
Three mean-reversion indicators that all measure "how far from the mean" — and produce different signals. When each is right for pairs trading vs single-asset, and how to combine them.
Black-Scholes vs Monte Carlo
Two option pricing methods, two different jobs. Closed-form speed vs simulation generality. Where each is right, where each lies, and how to combine them.
Sharpe vs Information Ratio vs Treynor
Three risk-adjusted return metrics that look similar but ask different questions. Total vol vs tracking error vs beta — which is right for what audience.
Sharpe vs Sortino vs Calmar
Three risk-adjusted return metrics, three different things they measure. Which one to use when, and what good values look like.
Kelly vs Fixed Fractional vs Optimal-f
Three position sizing methods with wildly different aggressiveness. Why most people should use fixed-fractional, and the half-Kelly trick.
VaR vs CVaR vs Max Drawdown
Three downside risk metrics with very different blind spots. Where VaR lies, why CVaR fixes it, and why allocators care about drawdown most.
Black-Scholes vs Binomial Tree
Two canonical option pricing methods. When the closed-form formula is right, when binomial trees beat it on early exercise, and how many tree steps you actually need.
Hurst vs Autocorrelation vs Variance Ratio
Three tests for detecting trend or mean-reversion. One-number summary, lag-by-lag, formal hypothesis test. When to use each.
Implied vs Historical vs Realized Volatility
Three volatility metrics with the same Greek letter and three different jobs. Pricing options, computing Sharpe, forecasting tomorrow — each demands a different one.
American vs European vs Bermudan Options
Three exercise styles, three different prices. Merton's 1973 theorem, the early exercise premium, and when each pricing method actually matters.
Geometric vs Arithmetic vs Time-Weighted Returns
Three ways to compute mean return, three different answers. Volatility drag is real money. The gotcha that breaks long-term wealth projections.